Monitoring and sanctions in a non-stationary structural job search modelISER External Seminars

We develop and estimate a structural econometric model of job search with monitoring of search effort
and sanctions. The earliest moment of the monitoring is announced several months in advance and the
judgement of the caseworker is based on cumulated search effort over a reference period. Forward-looking
recipients anticipate the threat of a sanction. We disentangle the effect of the threat of being monitored, the impact of the monitoring itself and the ex-post effect of a sanction.